Kennametal Inc. (NYSE:KMT) Plans Quarterly Dividend of $0.20

Kennametal Inc. (NYSE:KMT) declared a quarterly dividend on Tuesday, July 28th. Stockholders of record on Tuesday, August 11th will be paid a dividend of 0.20 per share by the industrial products company on Tuesday, August 25th. This represents a c) annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Tuesday, August 11th.

Kennametal has a dividend payout ratio of 59.7% meaning its dividend is sufficiently covered by earnings. Analysts expect Kennametal to earn $1.86 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 43.0%.

Kennametal Stock Down 2.2%

Shares of Kennametal stock opened at $33.11 on Friday. The company has a debt-to-equity ratio of 0.42, a current ratio of 2.62 and a quick ratio of 0.99. Kennametal has a 1 year low of $19.80 and a 1 year high of $43.81. The firm’s 50-day moving average is $34.38 and its two-hundred day moving average is $36.37. The stock has a market cap of $2.52 billion, a price-to-earnings ratio of 7.52, a PEG ratio of 0.34 and a beta of 1.36.

Kennametal (NYSE:KMT) last posted its quarterly earnings results on Wednesday, August 5th. The industrial products company reported $2.96 EPS for the quarter, beating the consensus estimate of $2.31 by $0.65. Kennametal had a net margin of 14.53% and a return on equity of 24.83%. The business had revenue of $736.61 million during the quarter, compared to analyst estimates of $725.74 million. During the same quarter in the previous year, the business posted $0.34 EPS. The company’s quarterly revenue was up 42.6% compared to the same quarter last year. Kennametal has set its Q1 2027 guidance at 2.500-2.800 EPS and its FY 2027 guidance at 4.150-5.150 EPS. As a group, research analysts expect that Kennametal will post 4.65 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on KMT. Morgan Stanley reduced their price objective on shares of Kennametal from $36.00 to $31.00 and set an “equal weight” rating for the company in a research note on Friday, July 17th. DA Davidson assumed coverage on Kennametal in a research report on Tuesday, June 16th. They set a “neutral” rating and a $34.00 target price on the stock. Jefferies Financial Group downgraded Kennametal from a “buy” rating to a “hold” rating and set a $47.50 price target on the stock. in a report on Thursday, May 7th. Zacks Research lowered Kennametal from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, July 14th. Finally, Barclays cut Kennametal from an “equal weight” rating to an “underweight” rating and decreased their price objective for the stock from $40.00 to $33.00 in a research note on Wednesday, May 27th. Six investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Kennametal currently has a consensus rating of “Reduce” and a consensus target price of $35.79.

Kennametal Company Profile

Kennametal Inc is a global industrial technology company that designs and manufactures advanced materials, tooling systems, and engineered components for a range of demanding applications. Its solutions support precision metalworking, earthmoving, and wear-resistant environments, catering to customers seeking enhanced productivity, longer tool life, and reduced operating costs.

The company’s product portfolio spans indexable cutting tools, solid round tools, tool holders, metalworking fluid systems, wear parts, ceramics and composites, and custom-engineered components.